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What's next for student loans? Biden could announce $10K forgiven if you make less than $125K

An announcement is expected Wednesday from President Joe Biden on whether to cancel some federal student debt.

GREENSBORO, N.C. — The White House could announce what's next with the student loan pause as soon as Wednesday. 

Payments are set to continue in September. 

The administration will consider canceling $10,000 in debt, for millions of borrowers who make less than $125,000. 

WFMY News 2's Amber Lake found out what this could mean for those paying off student loans in the Triad. 

Some say that student loans should be forgiven to a degree, and others think if you borrow money, you should pay it back. 

The expected announcement comes just a week before the years-long pause on student loan payments is set to expire next Wednesday, Aug. 31.

What could President Biden announce? 

CBS News reports the announcement will likely include at least a brief extension on the payment pause and some debt cancellation. 

President Biden says he supports canceling up to $10,000, but would likely limit that to those with an annual income of fewer than $125,000. 

Student debt has been climbing over the years.

In 2001, the average was almost $17,000 per person.

Last year, the average was about $31,000, according to the Education Data Initiative.

Natalie Thompson has student loan debt from UNC-Wilmington and believes any sort of relief would be a positive thing because interest rates are so high.

"I don't think people are mad about paying their loans out. We volunteered to pay them out, and we went to college with them, but we are never going to pay them back ever. I think it started with just wanting a cap on interest rates or just something to slow down and that has morphed into forgiveness," Thompson said. 

People on Facebook are weighing in on the debate.

Some agree with Thompson, saying student loans should be forgiven while others say:

“Where do I send my bill for the loans I have already paid back?" Another comment was, "you took the loan, so the debt is your responsibility. Nobody is getting their house or car debt cut for free so why should that happen for this."

Ja'Net Adams, money expert, and owner of Debt Sucks University says whatever the decision is Wednesday, it'll be positive. 

“How it’s going to help those in the Triad, it’s going to still give them the money that they’ve had the last two years they haven’t had to pay student loans each and every month so it gives them a little bit more spending power which is great for the economy locally,“ Adams continues, "if President Biden decides to do the $10,000 student loan forgiveness it actually will be a jolt to the economy when you take away that debt that the people have, then guess what, it actually helps them get closer to buying their first home.“

A new analysis estimates the total cost of forgiving that debt: almost $300 billion in the first year, according to the Penn Wharton Budget Model.

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